Hydralyte North America gains regulatory approvals for Canadian market
Hydralyte North America has also reported its highest ever October-monthly sales result.
The Hydration Pharmaceuticals Company Limited (ASX: HPC) (trading as Hydralyte North America) has secured regulatory approvals from Health Canada for the manufacture of liquid products destined for the Canadian market.
The approvals will allow the company to optimise its manufacturing processes from a centralised hub and capitalise on its existing distribution channels across North America.
Hydralyte North America currently sells four stock keeping units (SKUs) under its ready-to-drink range, which are sold by Canadian retail outlets including Shoppers Drug Mart and a number of independent stores.
Securing Health Canada approval for manufacturing in the US is expected to lead to a reduction in the cost of goods sold and cheaper freights.
It could also potentially underpin an increase in gross margins for the liquid SKUs.
Best-ever monthly sales
The Health Canada approvals come alongside Hydralyte North America’s best-ever October monthly sales result of US$925,000.
The result marks a continuation of the momentum observed during the northern summer months.
It represents a 125% increase on the US$411,000 achieved in the previous corresponding period which was underpinned by increased shipments to Canadian retail outlets, and ongoing sales growth through Amazon US.
It also represents an 18% rise on September sales of US$787,000.
Loan facility
Last month, Hydralyte North America secured a $12 million loan facility to fund its growth plans across the US and Canada.
The first tranche is for $6.5 million, with the remaining $5.5 million available to be drawn within 365 days of the agreement.
The funds will be used to promote distribution throughout Canada, build the US store and e-commerce arms, and launch a co-branded SKU product with celebrity ambassador Shay Mitchell.
Healthy solutions
Hydralyte North America has developed a range of liquid, table and powder “healthy hydration solutions” products.
The products are combined with vitamins, minerals, prebiotics and electrolyte salts in a bioavailable liquid format to provide rapid rehydration and other health benefits.
During the first half of the 2022 financial year, Hydralyte North America launched the high-margin SKU products Hydralyte+ Liver Support and Hydralyte+ Stress Relief with Ashwagandha.